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Domestic Medical Device Firms Need To Be Given Faster Access To US-FDA Says Assocham

Capital Market 

The has suggested that the Indian firms engaged in the manufacture of medical devices, be enabled faster access to the US drug and or equivalent certifications in a cost effective manner through a fast track desk in with the government, facilitating such a dispensation, according to an ASSOCHAM-MRSS Com joint study.

The sector has been witnessing an increased interest from the MNCs which have stepped up their footprints in India, along with locating their key research centres in the Indian cities. The inflow of foreign direct investment (FDI) in was $90 million between December 2014 and August 2015, post the government permitting 100 per cent FDI under the automatic route, jointly conducted by The Associated Chambers of Commerce and Industry of (ASSOCHAM) and MRSSindia.com. The global and is expected to grow to $520 billion by 2020. The Indian market is among the top 20 in the world by market size, and fourth in after Japan, and South Korea, the study noted.

Financial measures need to be undertaken to incentivise in this emerging sector and specifically in creating an ecosystem in the early stages of the The scope for expansion is huge as India's per capita spend on medical devices is the lowest among the BRIC (Brazil, Russia, India and China) countries, India spends a meagre share of $3 less than ($7), ($21) and ($42) which is significantly behind developed economies like the US ($340), noted the study, indicating a huge potential in the untapped areas.

Indian industry is worth over Rs 60,000 crore even as country's import bill for this segment amounts to over Rs 23,000 crore while exports amount to about Rs 7,000 crore , it said. The suggested that parity of duty on raw materials with finished goods should be maintained to enable the industry move from the inverted duty structure.

The Government can also play a role in enabling medical devices manufacturers with faster access to FDA or FDA equivalent certifications in a cost effective manner. A possible option is to set-up a fast track FDA desk in India, with the subsidizing certification expenses.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 10 2018. 14:29 IST
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